Canada - Canadian Federal 2012 Tax Budget

On March 29, 2012, the Federal Minister of Finance, Jim Flaherty, presented the majority government’s budget. From a personal tax perspective, the budget did not include many changes to personal income tax and did not change the income tax rates. However, it proposes to eliminate the Overseas Employment Tax Credit (“OETC”). This may have a negative effect on the cost and attraction of Canadians in some industries to take outbound assignments.